An IPO lists a company publicly via a price band, subscription window and allotment. Oversubscription makes headlines; fundamentals make returns.

New listings lack price history, so screen the prospectus: use of proceeds, promoter holding, anchor investors, and whether private-equity sellers are exiting at your entry price.

Example

IPOs subscribed 100x+ on retail frenzy routinely list flat and drift for a year - demand for the paper exceeded demand for the business.

In Ticker Screener

Add IPO allotments to a dedicated portfolio the listing morning; price alerts catch the post-listing base forming while hype fades.

Frequently asked questions

Are IPOs good investments?

Selectively. Established-profit IPOs at sane multiples compound; loss-making story IPOs at peak multiples mostly transfer wealth from public to promoters.

Related terms

See it on your own stocks.

P/E, ROCE, ROE, P/B, dividend yield and market cap — live beside every price in your watchlist.

Get the extension